Washington Mutual demanda a la FDIC por 17 billones US$ + daños

Preparemonos para la que se va a liar esta tarde... :):)

The vote and election tabulation (Sharp Declaration, #9662) indicates that the TPS groups not only voted to reject the Plan (thus creating the potential prefs vs commons APR issue), but also elected to opt-out of granting releases. By failing to grant the releases the TPS groups forfeited their eligibility to receive a distribution, thus reducing the total prefs (Class 19) pool which will share in the prefs allocation of NewCo common stock (written in the Plan as 70%/30%).

My calculations from the release election tabulation shows the following (numbers are for all class 19 prefs - TPS, K, P - taken together):

(1) value of all prefs = $7,500 M (that's $7.5 billion)
(2) value of prefs opting in = $4,691 M
(3) value of prefs opting out = $1,833 M
(4) value of prefs not yet opting = $975M

Because equity holders have until the Equity Release Election Deadline (2/28) to grant releases (opt-in), there is another number which is important, and that is the sum of those prefs that have already opted-in (#2) plus those prefs that have not yet opted but can still opt-in (#4):

(5) total value of prefs which could be opted-in = $5,667 M

The price of Ps jumped yesterday after the tabulation documents appeared (the price of Ks jumped too). This was presumably because "the market" believed that Ps were undervalued given the release election results showing that only $4,691 M out of $7,500 M had opted-in and were eligible to receive a distribution, which would mean a larger number of NewCo shares for those that opted-in. Of course, there was also a lot of chatter about the potential impact of Class 19 voting to "reject" the Plan and what this might mean to the 70/30 prefs/commons split (especially the increased chances of that split being adjusted in the pref's favor).

Using the reported release election numbers, the increased "value" of prefs due to not all prefs being opted-in can be calculated. The following shows a final opt-in grouping for prefs and the corresponding increase in "value" (e.g., number of NewCo shares) that would result
(a) final is only those currently opted-in (#2): +60%
(b) final is those currently opted-in (#2) plus those not yet opting (#4): +32%
(c) final is those currently opted-in (#2) plus those currently opted-out (#3): +15%
(d) final is all shares opted-in (#2 + #3 + #4): +0%

Whoa Nellie, what is (c) about?? Haven't those shares (TPS) already been opted-out? Yes, but...

DS Order, signed 1/13/2012
Tabulation Procedures
Quote
(c) Whenever a Creditor or Equity Interest holder casts more than one Ballot
or Election Form voting or electing, as the case may be, with respect to the
same Claim(s) or Interest(s) before the Voting and Election Deadline (or,
with respect to Release Elections submitted by holders of Equity Interests
in Classes 19 or 22, before the Equity Release Election Deadline), the last
valid Ballot, or Election Form, as the case may be, received on or before
the Voting and Election Deadline (or, with respect to Release Elections
submitted by holders of Equity Interests in Classes 19 or 22, on or before
the Equity Release Election Deadline), shall be deemed to reflect the
holder's intent, and thus, to supersede any prior Ballot or Election Form,
as applicable.

So although TPS is, at the moment, opted-out and is not eligible to receive a distribution on account of their holdings of prefs, they can submit another ballot by 2/28 which is NOT marked "opt-out" and that second ballot will supersede their first ballot, making their holdings eligible for a distribution. TPS can wait and see how the confirmation hearing goes and decide whether to keep their money where their mouth is, or to reverse course and get their distribution after all. Who knows, maybe they will even settle with the Debtors before it comes to that - this appears to be the thing to do lately.

Tu si que has liado a todo el foro con las recomendaciones de compra del siglo.

There is a new version of the plan on the docket that just hit in the past half hour. it shows an amendment allowing for payment of the TPS group's legal fees. Doesn't say so explicitly but would seem to imply a settlement. It changes the 70/30 ratio to 75/25. Reduces the common recovery, but that's better than zero.

10 member TAB
4 CC
4 EC
1 CC approved by Ec
1 Tricadia

75% for Pfd

but what about those Equity holders of common who gave approval or releases based on 30% for common? -Oh, it doesnt matter, cause they can still revert until Feb. 28.

Oh, but what about notice of the plan before the hearing - well if everybody agrees, ie see decl of M. Willingham discussing new governance with 10 member tab and support for modified pfd/eq split.

Si un 5% ha permitido que TPS acepte el acuerdo para saldar deuda de de $4 Billones.
¿que hay de valor en el otro 70%? :) :)

Tic tac...

Ñam Ñam baratitas . Tic tac

http://www.bloomberg.com/news/2012-02-16/wamu-creditor-group-to-switch-vote-and-back-bankruptcy-plan-lawyers-say.html